Is purchasing a home out of reach for me?

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Real Estate

A lot of my friends and colleagues are bringing up this topic lately so here goes my two cents on whether or not now is a good time to buy a home. In my opinion that is an extremely personal question that each individual buyer is going to have to answer. Is it a good time for you? Is your income where it should be to purchase a home that suits your needs? Have you set a goal to purchase a home within (x) number of months or years? Are you READY to become a homeowner? Market trends can lend information about timing, pricing, and rates for you to add to your arsenal of homebuying knowledge but there is no crystal ball to let you know it is a great or bad time to buy a home. 

It is freezing outside and there is nothing in here pressing to get done so I have spent the last hour or so pulling data for the main counties I sell real estate in. I was honestly surprised at what I found.  I looked into how many homes have been listed since January 1st, how many homes have gone pending since January 1st, and how many of both of these categories of homes are new construction. If you live around here, there is no way you've missed seeing all these fields turn into subdivisions or buildable lots. New construction is certainly an option right now! To see the quick chart I created, Click here . I think that site will ask you to provide your email address but you don't have to - you should be able to zoom in to see the data. If not, just throw your email in there; you know you've done it on other sites! 

The information I pulled is very promising :) the change in the market could be beneficial if you are planning on buying. Quick mortgage lesson if you're like most of us and don't have the liquid cash to purchase a home (yes, I called Wade Coble, lender extraordinaire, for these numbers).  Let's use $300K as our home price. If we are buying our $300K home with 5% down for thirty years with a 3.5% interest rate the payment would be $1,718.86. That same $300K home with 5% down payment with a current rate of 7% would have a $2,124.81  payment. That is a $405.95 difference in payment created by changing rates. Why am I even mentioning that?? Because - as new construction is being completed the scarcity gap is closing and builders are providing incentives for the first time in several years!! I currently work with builders who are offering a 2/1 rate buy down (worth 2% of the purchase price - $6K value at the $300K price point) which saves significantly on the payment for the first two years in hopes rates will drop and the buyer can refi by year three. Call Wade for details on that one 910-538-7821. If rate buydown isn't desirable to you as a buyer, you can always ask for closing cost assistance or other items like a refrigerator or blinds. 

The situation on resales is very similar - the buyers can always ask for the sellers to help with closing cost or negotiate seller paid repairs within their due diligence period. Also, duking it out and paying way over asking is almost a thing of the past. Not all desirable, affordable properties are going highest and best! I am still seeing some sellers receive multiple offers, but your chances as a buyer are much better than they were last year. 

So I said all of that to say this -  if it is the right time in your life, personally and financially, to buy a home then it is the right time. If you are tired of renting or living with family/friends it is the right time! If you're worried about having enough down payment funds some financing programs finance up to 100% of the loan. If you're a first time home buyer or if this is house number four it can be overwhelming. Give me a call and we can start working towards your specific goals *910-985-7388* If  you have a friend or family member considering buying or selling send them my info! The first step in buying or selling a home is choosing a competent realtor who is knowledgeable about the market and can get you from the first showing to the closing table without stress. I love my job and I'm overly dedicated so I'm pretty much always responsive. 

Enough about that. I am going to get up and work on my other passion now - Cooking :)